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National Insurance

1. Overview
You pay National Insurance contributions to qualify for certain benefits including the State

You pay National Insurance if you’re:

 16 or over
 an employee earning above £153 a week
 self employed and making a profit over £5,885 a year (unless you get an exception)

The exact amount you pay depends on:

 how much you earn
 whether you’re employed or self-employed

You may also want to pay voluntary contributions to make up for gaps in your National
Insurance record. For example, you can have a gap because you weren’t working and didn’t get
any state benefits.

When you stop paying
If you’re employed, you stop paying Class 1 National Insurance when you reach the State
Pension age.

If you’re self-employed you stop paying:

 Class 2 National Insurance when you reach State Pension age (or up to 4 months after
this to pay off any contributions you owe)
 Class 4 National Insurance from 6 April (start of the tax year) after you reach State
Pension age

2. Your National Insurance number
Your National Insurance number makes sure your National Insurance contributions and tax are
only recorded against your name.

It’s made up of letters and numbers and never changes.

Disability and Carers Service). if you apply for a student loan  your Individual Savings Account (ISA) provider. Rates for the 2014 to 2015 tax year Annual profits Class 2 Class 4 Up to £5.You can apply to get a National Insurance number if you don’t have one. Your payslip will show your contributions. Who uses your National Insurance number These organisations need to know what your number is:  HM Revenue and Customs (HMRC)  your employer  the Department for Work and Pensions (which includes Jobcentre Plus and the Pension. You’re self-employed You’re responsible for paying your own National Insurance. keep your National Insurance number safe and don’t give it to anyone who doesn’t need it. if you claim state much you pay You’re employed You pay Class 1 National Insurance contributions.885 £0 but only if you get an £0 . The rates for most people are:  12% on your weekly earnings between £153 and £805  2% on any weekly earnings over £805 You’ll pay less if you’re in a contracted out workplace pension or you’re a married woman or widow with a valid ‘certificate of election’. or in Northern Ireland the Department for Social Development  your local council. Your employer will take it from your wages before you get paid. if you claim Housing Benefit. if you open an ISA To prevent identity fraud. How much you pay depends on your profits. You pay National Insurance with your tax. you may also be your own employee and pay National Insurance Class 1 through your PAYE payroll. or the Northern Ireland Housing Executive  the Student Loan Company. National Insurance contributions . 3. If you’re a director of a limited company.

Share fishermen If you’re a share fisherman .450 and 2% £2.Annual profits Class 2 Class 4 exception £5. You can set up your payments when you register for Self Assessment or change how you pay.956 £2.865 over that amount Rates for the 2013 to 2014 tax year Annual profits Class 2 Class 4 £0 but only if you get an Up to £5. In 2014 to 2015 the rate is £3.70 a week £41. Class 4 contributions will be paid with your Income Tax. Job Seeker’s Allowance and the other benefits self- employed people pay towards.75 a week £0 £7.956 up to £41.725 £0 exception £5.885 .75 a week £41. How much you pay when employed and self-employed depends on your combined income from all your you’re employed on a British fishing boat but not under a contract of service .450 £41.755 up to £41. You’re employed and self-employed You might be an employee but also do self-employed work.70 a week £0 £7.40 a week.725 .755 - £2. .865 £41.70 a week 9% of profits from £7. Company directors There are different rules for National Insurance for company directors. Your can defer (delay) paying your National Insurance if you’re not sure what your earnings will be and you don’t want to overpay.£7.450 More than 9% of profits from £7.£7.755 up to £41.865 More than 9% of profits from £7. This contributes towards the basic State Pension.956 - £ pay a different Class 2 rate.450 over that amount You must arrange payments for Class 2 yourself.75 a week 9% of profits from £7.865 and 2% £2.956 up to £41.755 £2. In this case your employer will take care of your Class 1 payments and you have to pay Class 2 and 4 payments for your self- employed work.

if:  you can’t work due to illness  you’re caring for someone If you’re not working or getting credits you can also top up your National Insurance with voluntary contributions. 5. for example. Class 3: voluntary Benefit employees employed contributions Basic State Pension Yes Yes Yes Additional State Pension Yes No No New State Pension Yes Yes Yes Contribution-based Jobseeker’s Yes No No Allowance Contribution-based Employment Yes Yes No and Support Allowance Maternity Allowance Yes Yes No Bereavement benefits Yes Yes Yes Class 4 contributions paid by self-employed people with a profit over £7. Help if you're not working Your benefits could be affected if there are gaps in your National Insurance record. You can get credits if you can’t pay National Insurance contributions. 6. 4.. you can claim a refund. National Insurance credits help protect them. What National Insurance is for National Insurance contributions count towards the benefits in the table.Find out how much you’ve paid Apply to HM Revenue and Customs (HMRC) to check your National Insurance record. Class 1: Class 2: self. Change of circumstance If your address or name changes or you get married or enter a civil partnership you must contact HMRC.956 don’t count towards state benefits. Refunds If you think you’ve overpaid. .

If you start or stop self-employment you need to contact HMRC and let them know. contact the Jobcentre Plus application line. If you’re over 20. 8:30am to 5pm Find out about call charges If you already have a National Insurance number and lost it. National Insurance number interview Jobcentre Plus may write to you and ask you to come to an interview where you’ll be asked about your circumstances and why you need a National Insurance number. You must have the right to work or study in the UK to get a National Insurance number. If you’re moving to the UK you can only apply once you’re here. . you should fill in form CA5403 or contact the helpline. Call the National Insurance numbers helpline if you didn’t get one and you’re under 20. 8am to 6pm Welsh language: 0345 602 1491 Monday to Friday. Jobcentre Plus application line Telephone: 0345 600 0643 Monday to Friday. The letter will also tell you which documents to bring to prove your identity. Last updated: 6 August 2014 Apply for a National Insurance number Call Jobcentre Plus to apply for a National Insurance number. Jobcentre Plus might ask you to go to an interview to confirm your identity. eg:  passport/identity card  residence permit  birth/adoption certificate  marriage/civil partnership certificate  driving licence You turned 16 and didn’t get a number You should automatically get a National Insurance number just before your 16th birthday if you live in the UK.